Why Canadian homeowners are likely just as vulnerable as Americans were

If you listen to our banks, Canadian homeowners have nothing to worry about. According to Scotia’s latest housing outlook, for example: “Canadian household balance sheets remain in reasonably good shape, with homeowners’ equity in real estate assets averaging 67% compared with 41% in the United States.” In other words, if the average Canadian family were to sell their house at current market prices and pay off their mortgage, they’d be left with an amount equal to 67 per cent of the value of the house. An American household, by contrast, would be left with a mere 41 per cent. Sounds reassuring, no?